Case | HBS Case Collection | January 1993 (Revised July 2003)

Texas High-Speed Rail Corporation

by Timothy A. Luehrman

Abstract

The finance director of the Texas High-Speed Rail Corp. (THSRC) is considering modifications to the financing program designed to support the development, construction, and operations of THSRC's planned high-speed rail system. The current plan achieves many objectives, including raising $6.5 billion from private sources, but a few problems remain to be addressed. These include temporary overfunding, unutilized tax losses, and certain important contingencies. Designed to highlight the shortcomings of simple valuation tools in a static analysis when applied to a dynamic project. The class discussion should isolate specific analytical issues, which may then be addressed in subsequent class sessions.

Keywords: Private Sector; Financial Strategy; Financing and Loans; Taxation; Management Analysis, Tools, and Techniques; Strategic Planning; Valuation; Rail Industry; Texas;

Citation:

Luehrman, Timothy A. "Texas High-Speed Rail Corporation." Harvard Business School Case 293-072, January 1993. (Revised July 2003.)